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SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 1000

SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 1000. September 26, 2010 Presented by Lance Olson Olson Hagel & Fishburn, LLP www.olsonhagel.com. SEIU 1000 POLITICAL COMMITTEES.

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SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 1000

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  1. SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 1000 September 26, 2010 Presented by Lance Olson Olson Hagel & Fishburn, LLP www.olsonhagel.com

  2. SEIU 1000 POLITICAL COMMITTEES • SEIU 1000 has two primary political committees – commonly referred to as a “Candidate PAC” and an “Issues PAC.” There is also a third PAC – referred to as the Independent Expenditure PAC. • The Candidate PAC makes contributions and expenditures related to candidate campaigns and the Issues PAC makes expenditures related to ballot measures. • The primary reason for having three separate PACs is to comply with both tax laws and campaign reporting laws.

  3. SEIU 1000 POLITICAL COMMITTEES • Currently, the Candidate PAC and Issues PAC are registered as state “committees” with the Secretary of State’s office. • Each PAC routinely files campaign reports with the Secretary of State. • All money going into the PACs and all money going out of the PACs is reported on the campaign reports.

  4. CONTRIBUTIONS INCLUDE • Monetary payments • Loans • In-kind donations of goods or services State Candidates are subject to limits

  5. EXAMPLES OF IN-KIND CONTRIBUTIONS • Use of office space or phones • Payments made directly to vendors on candidate’s behalf • Mailings to the public done at the request or suggestion of the candidate or in coordination with the candidate • Paying union staff to work in candidate’s campaign

  6. INDEPENDENT EXPENDITURES DEFINITION A payment which is: • Made in connection with a communication that; • Expressly advocatesthe election or defeat of a candidate or the qualification, passage or defeat of a ballot measure, but which is; • Not made “at the behest of” a candidate or other committee or their agents. Independent Expenditures not subject to limits

  7. INDEPENDENT EXPENDITURESWHEN IS AN EXPENDITURE NOT “INDEPENDENT” AND BECOMES AN IN-KIND CONTRIBUTION? • Based on information about candidates’ needs or plans provided by the candidate or agents. • When the communication replicates, reproduces or republishes, in whole or in substantial part the candidate’s own materials. • When the content, timing, location, mode, intended audience, volume of distribution or frequency of placement of the communication is coordinated with the candidate or her agents.

  8. INDEPENDENT EXPENDITURES“Firewall” For organizations making both coordinated in-kind contributions and independent expenditures regarding the same candidate, the FPPC has suggested that the organization may establish a “firewall” to make sure the independent expenditures remain independent.

  9. INDEPENDENT EXPENDITURES“Firewall” • The purpose of a firewall is to prevent persons with knowledge about a candidate’s campaign from providing strategic information to persons in charge of making independent expenditures, and vice-versa. • To establish a firewall, the organization should decide which union staff and leaders will be working on independent expenditures and which staff will deal with contributions to the candidates or their campaigns.

  10. INDEPENDENT EXPENDITURES“Firewall” • A written firewall policy should advise all staff that certain staff and leaders will be assigned to work on independent expenditures (i.e. Blue Team) and some will be assigned to work with the candidate campaigns (i.e. Red Team). • Members of either team should not provide information about its activities to members of the other team.

  11. MEMBERSHIP COMMUNICATIONS • Includes communications to member and member’s family – not fee payers. • Does not apply to sending out candidate’s brochures – must be the union’s message. • May be coordinated with candidate’s campaign. • Not subject to limits or reporting under California law.

  12. 10% RULE • Donation of employee services to a candidate’s campaign, if 10% or less of an employees’ compensated time in a calendar month, is not an in kind contribution and is not subject to contribution limits. • If an employee spends more than 10% of his or her compensated time in a calendar month, the entire amount of his or her salary is a reportable in-kind contribution to the candidate (gross salary plus expenses.)

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